Question: please help with following MCQ: question 1) Consider a firm that is producing 100 cloth meters of cloth per week. Assume that the factors of

please help with following MCQ:

question 1)

please help with following MCQ: question 1) Consider a firm that is

Consider a firm that is producing 100 cloth meters of cloth per week. Assume that the factors of production for this firm are labour and coal. The figure below displays three isocost lines. What can we conclude, based on this information? 10 G Tonnes of coal Cost - ESO HN Cost - E80 Cost = 640 M 2 3 4 6 7 85 10 Number of workers A. Isocost HJ represents all points that can produce 100 metres of cloth at a particular price ratio. B. Isocosts MN and FG represent the same price ratio (wage/price of coal) but different total costs of production. O C. When the wage is $10 and the price of coal is $5, the combination of inputs at point N is more costly than the inputs at point B. O D. Isocost HJ represents a higher (wage/price of coal) ratio than isocost FG

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